Update: CYBG to acquire Virgin Money in £1.7bn deal

Creating UK's fifth-largest bank

The board of CYBG has confirmed it has reached an agreement to acquire Virgin Money, valuing the company at £1.7bn.

In an update today, CYBG said it had agreed to offer 1.2125 new CYBG shares for every Virgin Money share, based on a closing price of 306p per CYBG share.  The offer values each Virgin Money share at 371p and the company at £1.7bn, representing a 19% premium. Following completion of the offer, Virgin Money shareholders will own 38% of the combined company.  Sir Richard Branson's Virgin Group is Virgin Money's biggest shareholder with a 34.8% stake in the business. CYBG has also said it will keep the Virgin Money brand, subject to an agreement with Virgin Group. David Duffy, chie...